Verso Paper (VRS) has had a tremendous move over the last 2 days. The stock went from $0.65 to $5.50, a 746% gain in just 2 market sessions. Since this move coincided with Verso Paper announcing the acquisition of NewPage, a bankrupt paper producer, most people are linking the two events. The story goes that a $4.5 billion revenue giant is being built and Verso's market cap was so low that people somehow got enthused over the prospects of this newly-built company.
I believe this whole story misses the point. Verso Paper is not up tremendously on account of the merger. Quite differently, Verso Paper is up tremendously because investors are smelling the sweet smell of...
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